Ambarella, a maker of chips for computer vision systems and video surveillance cameras, saw its shares tumble Wednesday after it delivered a mixed quarterly report. AMBA stock fell more than 19% on the news.
The Santa Clara, Calif.-based company late Tuesday said it earned an adjusted 20 cents a share on sales of $80.9 million in its fiscal second quarter ended July 31. Analysts polled by FactSet predicted Ambarella earnings of 19 cents a share on sales of $80.2 million. On a year-over-year basis, Ambarella earnings declined 43% while sales rose 2%.
Production snags from Covid lockdowns in China and supply constraints hurt Ambarella's second-quarter results.
For the current quarter, Ambarella forecast sales of $81 million to $85 million. The midpoint of $83 million was below Wall Street's consensus estimate of $84.6 million for the fiscal third quarter.
AMBA Stock Falls After Report
On the stock market today, AMBA stock fell 19.7% to close at 67.88. During the regular session Tuesday, AMBA stock dipped a fraction to close at 84.50.
"Computer vision revenue increased significantly year over year in Q2 and our cumulative CV shipments now exceed 10 million SoCs (system on chips), including more than 20% shipped into the automotive market," Chief Executive Fermi Wang said in a news release.
Ambarella Has Subpar Composite Rating
Ambarella's products are used in a variety of surveillance and computer-vision applications. They include video security, advanced driver assistance systems, autonomous driving and robotic applications.
AMBA stock ranks No. 18 out of 34 stocks in IBD's fabless semiconductor industry group, according to IBD Stock Checkup. It has a subpar IBD Composite Rating of 38 out of 99.
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